FRANCHISING IN LOUISIANA
Registration or Filing Required?
No
Business Opportunity Laws?
Yes
Louisiana is not a franchise registration state nor a franchise filing state. You may offer or sell your franchise without registering or filing your FDD with the state, as long as you are compliant with the FTC Franchise Rule. There are certain instances in which a franchisor may be required to register with the state.
Louisiana has enacted Business Opportunity Laws, that define a business opportunity as a sale of goods or services exceeding $300 where the goods or services enable the buyer to start a business, and the seller represents it will do one of the following:
- Provide locations or assist buyer in finding locations for vending machines, racks or devices,
- Buy any products made by the buyer using items sold by seller,
- Guarantee buyer will derive income exceeding purchase price or seller will refund some/all money or buy back some/all products if buyer is not satisfied, or
- Provide a sales or marketing plan to enable the buyer to derive income exceeding price paid, unless it is made in conjunction with license of a registered trademark
Franchisors that fall into one of these categories are exempt from business opportunity registration in Louisiana if they license a registered trademark as a part of their franchise sales. The trademark will qualify if its registered federally with the USPTO or with the state of Louisiana. Franchisors may rely on this exemption and are not required to file proof of their federal or state registered trademark with the Louisiana Secretary of State. Franchise offerings that meet one of the other three qualifications or aren’t made with a registered trademark, must continue to register with Louisiana.